Debt recovery and unpaid sums

As a general rule, personal actions for which the law sets no special period are time-barred five years after they can be brought (Article 1964 of the Civil Code, following the 2015 reform). There are special periods: three years for actions on bills of exchange and promissory notes, six months for cheques, five years for rents, leases and periodic pensions or payments (Article 1966) and twenty years for mortgage actions. Debts to the Tax Agency follow their own rules, with a general period of four years. Transitional rules exist for obligations predating October 2015, so each case should be checked.

Limitation is interrupted, and the period starts again from zero, in three ways (Article 1973): bringing the action before the courts, an out-of-court claim by the creditor and any act by the debtor acknowledging the debt, such as a part payment or an undertaking to pay. It is usually interrupted by a burofax with certification of content and acknowledgement of receipt, or by a notarial demand, so that there is proof of the date and content.

Two important points: limitation must be raised by the debtor, as the court does not apply it of its own motion, and a time-barred debt does not disappear, but the debtor may successfully refuse to pay it. If you have an old debt, do not wait until the deadline approaches: claim in writing and keep the proof.

The payment order procedure (Articles 812 et seq. of the Civil Procedure Act) is a special, quick and simple procedure for claiming liquidated, determined, due and payable money debts of any amount, where you have a supporting document (invoices, delivery notes, contracts, acknowledgements of debt, communications from the debtor) or certain certificates, such as those for owners' association charges. The court requires the debtor to pay or oppose within twenty working days. If the debtor pays, the matter ends; if the debtor does nothing, a decision is issued allowing seizure to be requested directly; and if the debtor opposes, the procedure continues as oral proceedings (up to 6,000 euros) or ordinary proceedings (if the amount is higher).

Since April 2025, Organic Law 1/2025 has generally required proof of a prior attempt at a negotiated solution (burofax, notarial demand or other appropriate means of dispute resolution) for the claim to be admitted. This step should therefore be prepared before filing the application.

As for cost: the initial application does not require a lawyer or court representative (procurador) if the amount does not exceed 2,000 euros. Above that figure they are needed for enforcement and any subsequent trial. Individuals are exempt from court fees; legal entities pay a fee where the amount exceeds 2,000 euros. To this are added the fees of the lawyer and court representative, which are agreed in writing. If the debtor does not oppose and enforcement follows, the costs may fall on the debtor.

The more evidence, the better. The basics are to prove three things: that the debt exists, its amount and that it is due and payable. The following serve this purpose: the signed contract or quotation; invoices and delivery notes, signed or accepted; bank transfers or statements proving the loan or part payments; emails and messages in which the debtor acknowledges the debt, asks for more time or promises to pay; signed acknowledgements of debt, promissory notes, bills of exchange or unpaid cheques; and any communication showing the prior business relationship.

The debtor must also be correctly identified: full name, tax identification number and up-to-date address (for a company, the details from the Commercial Registry). You should prepare a calculation of the amount claimed, with the principal, interest and, where applicable, recovery costs. If you have already made a claim, provide the burofax or notarial demand with its acknowledgement of receipt, as this also proves the prior attempt at negotiation required by law and serves to interrupt limitation.

WhatsApp messages and emails may serve as evidence, but they should be preserved with safeguards (for example, with a notarial record or expert report if the debtor challenges them). If you are unsure whether your documents are sufficient for a payment order, a prior study will prevent the application from being rejected.

Yes. Under Spanish law, contracts are valid and binding whatever form they take, provided that the essential requirements are met (Articles 1254 and 1278 of the Civil Code). The difficulty is not legal but evidential: you will have to prove that the debt exists and how much it is, without the signed document.

There is a great deal of evidence that can replace a written contract: bank transfers with their reference, accepted invoices, delivery notes, quotations, emails and messages in which the debtor acknowledges the debt, recordings or witness statements, part payments implying acknowledgement and the parties' own conduct. For loans between individuals, it is very helpful if the money was handed over by transfer, which is much easier to prove than cash.

If there are insufficient documents for a payment order, it may be necessary to bring declaratory proceedings (oral or ordinary), with witness or expert evidence. And if the debtor is still willing to cooperate, the best course is to obtain a written acknowledgement of debt (with the amount, the date and a payment schedule) before claiming, because it turns a disputable debt into one that is easy to recover.

It depends on the procedure, the court and, above all, whether the debtor opposes and whether it is easy to locate the debtor and find assets. As an order of magnitude, in a payment order without opposition, from filing the application until seizure can be requested usually takes from a few weeks to some months, taking into account admission, the demand and the twenty working days to pay or oppose. If the debtor opposes, the process continues as oral or ordinary proceedings and may last from several months to more than a year, depending on the court's workload and any appeals.

To this declaratory stage must be added enforcement: tracing assets, seizure, dealings with banks and public bodies and, if there are properties, valuation and auction. Actually collecting the money can take longer than winning. The real speed therefore depends on the debtor's assets.

In practice, the quickest route is usually firm negotiation: a well-drafted demand, warning of legal action, interest and costs, resolves many cases in weeks. And good preparation (documents, correct address, calculation of interest, proven prior attempt at negotiation) avoids unnecessary delay.

The judgment or enforceable title does not translate into immediate payment, but the debt does not disappear. Before giving up, you must check whether the debtor is truly insolvent. In enforcement, the court may be asked to investigate the debtor's assets (Article 590 of the Civil Procedure Act) through the Judicial Neutral Point (Punto Neutro Judicial), which allows enquiries to be made of the Tax Agency, Social Security, the Land Registry, the Commercial Registry, the Directorate General of Traffic and financial institutions, and to require the debtor to declare assets. Accounts, balances, tax refunds, vehicles, properties, company shares and sums owed to the debtor by third parties (for example, unpaid invoices) may be seized.

If nothing is found, the court may declare insolvency and provisionally close the file. Enforcement may be reactivated if assets appear, within the expiry period of the enforcement action (five years from when the title becomes final, Article 518), which should be monitored and, where appropriate, kept alive.

If the debtor is a company, there are other routes: holding the directors liable, for example where they failed to dissolve the company when a statutory ground for dissolution existed (Article 367 of the Companies Act) or for acts directly harming the creditor, applying for compulsory insolvency or challenging transactions that strip the company of assets. Concealing assets to the detriment of creditors may constitute the offence of fraudulent removal of assets (alzamiento de bienes). Each route requires an assessment of whether the cost is justified.

Yes, but within statutory limits. Article 607 of the Civil Procedure Act declares exempt from seizure salaries, wages, pensions and remuneration not exceeding the statutory minimum wage (SMI). Anything above that amount may be seized on a progressive scale: 30% of the band between one and two times the SMI, 50% of the band between two and three times, 60% between three and four, 75% between four and five, and 90% of any excess over five times the SMI. In practice, this means that with a low salary there is usually no seizure, and with high salaries a substantial part may be seized.

The same rules apply to retirement, widow's or widower's and incapacity pensions. Where a maintenance debt is claimed, the court may freely set the amount that can be seized, without being bound by the limits of Article 607. To seize a salary, the court orders the employer, or the paying body, to withhold the relevant part and pay it into the court account.

Bank accounts must also be taken into account: if a salary or pension is paid into an account, the bank must respect the exempt part. If the debtor works without a contract or is paid in cash, it is more complicated and it may be necessary to seize other assets or rights.

An enforcement claim is the document by which the court is asked to enforce directly a debt recorded in a title that the law treats as enforceable, without the need for a prior trial to dispute the debt. Enforceable titles include, among others, final judgments, arbitral awards, public deeds, commercial contract policies authenticated by a notary or commercial broker, bills of exchange, cheques and promissory notes meeting the statutory requirements (the so-called juicio cambiario) and the decision ending a payment order procedure in which the debtor did not oppose (Article 517 of the Civil Procedure Act).

If the title is valid, the court issues a general enforcement order, sets enforcement in motion, demands payment from the debtor and, if payment is not made, proceeds to seize assets. The debtor may oppose within ten days on limited grounds, such as payment, limitation, set-off, failure of the title to meet the requirements or an agreement not to enforce. If the opposition is dismissed, the seizure and realisation of assets continue.

It is used where you hold an enforceable title: it is the quickest and most effective way of recovering. If you do not, one must first be obtained through a payment order or declaratory proceedings. Importantly, an enforcement action based on a judgment expires after five years, so time should not be allowed to pass.

The first step is to find out what «closed» means. A company that has stopped trading or closed its premises has not necessarily ceased to exist legally. The Commercial Registry (and the Public Insolvency Register) must be consulted to find out whether the company is still in existence, dissolved, in liquidation, extinguished or insolvent. If it is still registered, it may be sued and any assets it has may be seized.

If the company is insolvent, the claim must be notified to the insolvency administrator within the statutory period, which is short (as a general rule, one month from publication of the declaration), and individual claims must cease. If it has been liquidated and extinguished, creditors may proceed against the shareholders, up to the limit of what they received from the liquidation, and against the liquidators if they acted without diligence. And, in the cases provided by law, against the directors for debts incurred after a ground for dissolution arose without their acting on it, or for acts directly harming the creditor.

If the debtor is a self-employed person who has closed their business, the debt remains theirs, with all their assets, and may be claimed in the same way. In all cases, before spending money, you should check the registry and asset position in order to decide on the most cost-effective route.

Yes, and in many cases it is advisable to do so. In commercial transactions between businesses (or between businesses and public authorities), the Late Payment Act (Law 3/2004) establishes, unless otherwise agreed within the statutory limits, a payment period of thirty calendar days from delivery of the goods or provision of the service, extendable by agreement to sixty. If the debtor does not pay, default interest accrues automatically, without the need for a prior demand, at the statutory rate set every six months in the BOE (the European Central Bank rate plus eight points; in the second half of 2026, 10.40% per annum unless otherwise agreed). In addition, the creditor is entitled to fixed compensation of 40 euros for each invoice paid late and to claim any proven recovery costs above that amount.

Outside commercial transactions (loans between individuals, civil debts), interest is as agreed or, if not agreed, the statutory interest rate, from when the debtor falls into default, normally from the demand for payment (Article 1100 of the Civil Code). Agreed interest may be moderated by the court if usurious and, in consumer contracts, if unfair.

Once judgment has been given, moreover, procedural interest (the statutory rate plus two points) accrues from the judgment. It is therefore advisable always to include in the claim the principal, interest and recovery costs, with a clear calculation.

A notarial demand (requerimiento notarial) is a record in which a notary delivers a communication to the debtor on behalf of the creditor and records its content, the date and time of delivery and the recipient's reaction (for example, whether it is received, rejected or any statement made). It is governed by the Notarial Regulations and has very high evidential value, because the notary attests to what happens.

It serves several purposes. It constitutes a verifiable out-of-court claim, so that it interrupts limitation (Article 1973 of the Civil Code) and places the debtor in default if payment is not made. It is one way of proving the prior attempt at negotiation that Organic Law 1/2025 requires before most civil claims are filed, along with burofax and certified mail with acknowledgement of receipt. And it usually has a deterrent effect on the debtor, who sees that the matter is being taken seriously.

Compared with a burofax with certification of content, which is cheaper and quicker, a notarial demand is more formal and allows the notary to record the debtor's statements, which is sometimes useful as evidence. In both cases, the text should be drafted with care: identify the debt, the amount, the period for payment, the payment details and the consequences of non-payment. A poorly drafted demand loses effectiveness.

First, do not ignore it. If you do nothing within twenty working days of notification of the demand, the court will issue a decision allowing the creditor to request seizure of your assets without further formality. Read the demand carefully, check who is claiming, how much and why, and compare the amount with your documents.

You have three options. Pay the sum claimed within the period, which ends the procedure and avoids costs. Oppose, by means of a reasoned document explaining, even briefly, why you do not owe all or part of the amount claimed: because you have already paid, because the debt does not exist or is lower, because it is time-barred, because of set-off or breach by the creditor or, in consumer contracts, because of unfair terms, which the court may review of its own motion. If the amount exceeds 2,000 euros, the opposition must be signed by a lawyer and court representative. If you oppose, the matter continues as oral or ordinary proceedings. Or reach a payment agreement with the creditor, recorded in writing.

If you believe that the notification was not properly received (for example, because it was sent to an address that is not yours), there are ways of seeking annulment of the proceedings, but you must act at once. The sooner you consult a lawyer, the more scope you will have to decide well.

It is possible, although the manner requires care. It is advisable to begin with a frank conversation and, if the debtor acknowledges the debt, to formalise it in writing: an acknowledgement of debt with the amount, the date and a realistic payment schedule, signed by both, which also interrupts limitation and serves as a title if a claim is later needed. Many debts between people close to one another are resolved in this way, with an instalment agreement that preserves the relationship.

If there is no response, the next step is usually a written communication with acknowledgement of receipt (burofax), in a firm but respectful tone. Since 2025, moreover, the law has generally required proof of an attempt at negotiation or mediation before filing a claim, so this stage is not a waste of time but a requirement. Mediation can help both parties to reach an agreement with the help of an impartial third party.

You should avoid actions that may backfire: do not pressure or threaten, do not disclose the debt to third parties or on social media (you may infringe the debtor's honour and privacy), and do not include anyone in a list of defaulters without meeting the statutory requirements, which demand that the debt be certain, due and payable and that payment has been demanded. If a claim must ultimately be filed, a payment order is a relatively quick route that generates little conflict.

It depends on the amount and the procedure. For the initial application in the payment order procedure, and for oral proceedings and enforcement of less than 2,000 euros, the law does not require a lawyer or court representative, and the standard forms provided by the Administration of Justice may be used. Above that amount, both are compulsory in enforcement and in the oral proceedings following opposition, and they are always compulsory in ordinary proceedings.

Even where it is not compulsory, taking advice makes good sense. A lawyer helps to decide whether it is worth claiming and by which route, to prepare the prior claim and attempt at negotiation now required by law, to calculate the principal, interest and costs, to gather the evidence, to prevent the application being rejected for formal defects and to defend you if the debtor opposes or raises limitation. A lawyer also helps to assess whether the debtor is solvent before you spend money.

Fees are agreed in writing before work begins, and in claims the lawyer and court representative are paid from the outcome if the other side is ordered to pay costs, so part of the cost may be recovered. Many insurance policies include legal expenses cover, so it is worth checking whether you have it.

It all depends on the country and where the debtor's assets are. Within the European Union, European law makes claiming much easier. The Brussels I Recast Regulation generally allows a claim to be brought in the country of the defendant's domicile or, for contractual debts, at the place of performance of the obligation, and judgments are recognised without any special procedure. There are also specific instruments: the European order for payment, for undisputed cross-border money claims; the European enforcement order, for uncontested claims; the European small claims procedure, for low-value claims; and the European account preservation order, which allows a debtor's funds in another Member State to be frozen on an interim basis.

Outside the EU, it depends on international conventions and the law of the debtor's country. It is normally necessary first to obtain a judgment in Spain or in the competent country and then to seek its recognition and enforcement in the State where the assets are located, by procedures that vary widely. Service on a debtor abroad must comply with the European regulations or applicable conventions, and may lengthen the proceedings.

Before beginning the claim, you should find out where the debtor has assets and accounts, and whether the cost of claiming is justified. In contracts with foreign parties, it is highly advisable to include governing law and jurisdiction clauses and payment guarantees from the outset.